Ashton begins work at Potentilla kimberlite pipe

Ashton Mining of Canada (ACA-T) has begun an exploration program on the Kikerk Lake property in the north Slave Craton region of Nunavut.

The program will entail collecting a mini-bulk sample from the diamondiferous Potentilla kimberlite and identifying targets for drilling.

Potentilla was discovered in September 2001. The discovery hole, which tested the centre of a magnetic anomaly, cut kimberlite breccia diatreme beneath 9.9 metres of overburden to a depth of 142.3 metres. The hole was shut down while still in hypabyssal kimberlite at a depth of 184.7 metres.

In October, a 207.8-kg sample returned 230 microdiamonds and 22 macrodiamonds (a macro is defined here as measuring greater than 0.5 mm in at least one dimension). The largest stone measured 2.13 by 1.94 by 0.87 mm.

Samples of the diatreme phase weighing 129.1 kg returned 160 micros and 15 macros. Seven of the macros exceeded 0.5 mm in two dimensions, with the largest stone measuring 2.13 by 1.94 by 0.87 mm. The deeper hypabyssal phase returned 70 micros and seven macros from 78.7 kg of core. Three of the macros were greater than 0.5 mm in two dimensions, with the biggest stone measuring 0.8 by 0.52 by 0.39 mm.

In the current program, Ashton intends to collect a mini-bulk sample of up to 10 tonnes from Potentilla and define the shape and size of the body by delineation drilling and geophysical surveying.

The property hosts at least one unexplained indicator mineral train. A helicopter-borne magnetic and electromagnetic survey is being flown over an area that includes the mineral train and Potentilla. Ground geophysical surveys will then be performed on any anomalies identified, and drilling will target any priority targets before spring breakup.

Ashton and Caledonia Mining (CAL-T) each hold a 35% interest in the property. Ashton can boost its interest to 52.5% by spending $750,000 on exploration by May 31, 2003. Ashton can further increase its stake to 59.5% by carrying Caledonia through to the completion of a feasibility study. The Northair Group’s Northern Empire Minerals (NEM-V) retains a 30% working interest.

In other news, Ashton Mining has signed an agreement with Augusta Resource (YAU-V), which has exposure to more than 6,475 sq. km of ground in the Coronation Gulf diamond district of Nunavut.

Ashton will manage the 2002 exploration field program on Augusta’s 558-sq.-km BH property, 15 km west of the Rockinghorse property, held jointly by Kennecott Canada Exploration and Tahera (TAH-T). The Rockinghorse property hosts the highly prospective Anuri kimberlites.

The first round of exploration will be funded entirely by Augusta. On completion of the first phase, Ashton can elect to earn a 60% interest in the property by spending $1.1 million before April 30, 2006.

Ashton and Augusta are negotiating similar agreements with respect to other properties in the Coronation district.